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#Retail & Brands

Adidas achieves strong start to 2025 with double-digit growth across all markets

Sportswear giant adidas has reported a significantly better-than-expected performance for the first quarter of 2025, reflecting strong momentum across both lifestyle and performance categories. The company posted a 13% increase in currency-neutral revenues, driven by 17% growth in the adidas brand and broad-based double-digit gains across markets, sales channels, and product segments.

Revenues rose nearly €700 million year-over-year to €6.15 billion, supported by robust sell-through rates, an expanding wholesale presence, and renewed demand across adidas' global direct-to-consumer operations. Operating profit surged by 82% to €610 million, pushing the operating margin to 9.9%, up 3.8 percentage points compared to Q1 2024. Net income from continuing operations more than doubled to €436 million.

"Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand," said adidas CEO Bjørn Gulden. "The €610 million operating profit and 9.9% margin prove the great potential of our company."

Footwear drives growth across segments

Footwear was once again the main growth engine, with a 17% increase, led by high-performing franchises in Originals, Running, Sportswear, Basketball, and Outdoor. Lifestyle demand remained strong, driven by renewed consumer interest in silhouettes like Samba, SL72, Campus, and retro styles including Superstar and Adiracer. Meanwhile, performance running saw continued acceleration, including the successful launch of the Adizero Adios Pro 4 and Evo SL.

Collaborations with high-profile names such as Bad Bunny, Pharrell Williams, Bape, and Sporty & Rich, as well as activations at Paris Fashion Week and global sporting events, further amplified adidas’ visibility and appeal in key consumer segments.

All markets and channels contribute to momentum

Sales increased across all major markets: Latin America (+26%), Emerging Markets (+23%), Europe, Greater China, and Japan/Korea (each +13–14%), with North America posting 3% growth, which would have reached 13% excluding the phased-out Yeezy business.

The adidas brand showed double-digit growth in both wholesale and own retail, while e-commerce grew 18% excluding Yeezy, highlighting sustained momentum in digital.

Investment in brand and innovation

adidas increased its marketing spend by 14% to support high-profile campaigns such as You Got This and The Original, as well as new product launches and the debut of its Mercedes-AMG PETRONAS F1 partnership. Gross margin improved to 52.1%, supported by lower product and freight costs and reduced discounting.

Despite increased investments, adidas achieved better overhead efficiency, with operating expenses growing at a slower pace than revenue—contributing to significant bottom-line growth.

Tariff uncertainty clouds full-year outlook

While reaffirming its full-year forecast, adidas cautioned that geopolitical and macroeconomic risks—particularly the threat of increased U.S. tariffs on footwear and apparel—could weigh on results. Gulden noted that adidas is not able to produce most of its products in the U.S., leaving the company exposed to higher import duties that may eventually lead to price increases.

“Although we had already reduced exports from China to the U.S. to a minimum, we are still exposed to very high tariffs,” Gulden said. “We will try to navigate this uncertainty in the most pragmatic and agile way possible.”

 

Full-year outlook

Despite uncertainties, adidas expects to grow currency-neutral sales at a high-single-digit rate in 2025 and forecasts operating profit of €1.7 to €1.8 billion, supported by continued brand strength, a broader product range, and improved retailer relationships.

With no further Yeezy sales planned in 2025, adidas is positioning itself to gain market share through its core brand and performance, proving that strong fundamentals and global brand equity can still drive growth—even in turbulent times.



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#Textiles & Apparel / Garment

adidas finishes successful year with better-than-expected fourth quarter results

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#Retail & Brands

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#Retail & Brands

adidas celebrates 75 years of innovation and sports history

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#Retail & Brands

adidas reports strong Q2 growth with double-digit sales increase

Adidas has announced a robust second quarter, showcasing significant growth and strong brand momentum. The company achieved an 11% increase in currency-neutral sales, driven by a remarkable 16% growth in the Adidas brand. This growth was consistent across all channels and markets, highlighting the brand's expanding influence and appeal.

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#Recycling / Circular Economy

Recover™ secures multi-year recycled cotton agreement with H&M

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#Sustainability

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#Sustainability

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#Natural Fibers

Better Cotton Initiative marks World Cotton Day with launch of innovative product label

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#Associations

BTMA backs global growth while investing in future UK leaders

As one of a number of new initiatives launched this year, the British Textile Machinery Association (BTMA) is launching the UK-India Textile Machinery Coalition. The UK-India Free Trade Agreement, signed in July 2025, has implications that extend across sourcing, competitiveness and long-term trade dynamics, believes BTMA CEO Jason Kent.

#Raw Materials

China projected to increase cotton production, yields, and imports in 2026/27

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#Raw Materials

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#Sustainability

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